Litgrid AB has a Cash Ratio of 0.03. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Litgrid AB's Cash Ratio or its related term are showing as below:
OVSE:LGD1L'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.07 Max: 0.67
Current: 0.03
During the past 13 years, Litgrid AB's highest Cash Ratio was 0.67. The lowest was 0.01. And the median was 0.07.
OVSE:LGD1L's Cash Ratio is ranked worse than 91.8% of 500
companies
in the Utilities - Regulated industry
Industry Median: 0.29
vs OVSE:LGD1L: 0.03
Litgrid AB Cash Ratio Historical Data
The historical data trend for Litgrid AB's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Electric subindustry, Litgrid AB's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Litgrid AB's Cash Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Litgrid AB's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Litgrid AB's Cash Ratio falls into.
Litgrid AB Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Litgrid AB's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Litgrid AB (OVSE:LGD1L) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Litgrid AB Cash Ratio Related Terms
Thank you for viewing the detailed overview of Litgrid AB's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Litgrid AB is an operator of an electricity transmission system operating electricity transmissions in Lithuania. It is responsible for integrating the national power system into the European power infrastructure and electricity market. The business activity of the group functions under various segments namely Electricity transmission and related services activities, and Other income. Geographically, the business presence of the firm is seen in the regions of Lithuania, Norway, Sweden, Latvia, Estonia and others of which the Lithuania region accounts for the majority of the revenue.
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